Accounting Details

Accounting

An accounting module in the LANA ERP system is essential for managing financial transactions and ensuring accurate financial reporting. It integrates various financial processes, providing a comprehensive view of an organization's financial health.

This module forms the backbone of financial operations, tracking transactions, managing the general ledger, and handling tax calculations. It ensures compliance with accounting standards and provides valuable insights for decision-making.

Key components of an accounting module typically include

General Ledger

The General Ledger (GL) serves as the central repository for recording and summarizing all financial transactions within an organization. It provides a comprehensive and detailed record that supports the preparation of financial statements, such as the balance sheet and income statement.

The General Ledger aggregates financial data, enabling the creation of accurate financial statements that reflect the organization's financial position and performance.

It maintains a detailed record of all financial transactions, providing transparency and supporting audits and financial reviews.

By analyzing GL data, management can make informed decisions regarding budgeting, forecasting, and strategic planning.

A well-maintained GL ensures adherence to accounting standards and regulatory requirements, facilitating compliance during financial reporting.

Accounts Receivable / Payable

Accounts Receivable and Accounts Payable are essential for managing an organization's cash flow and financial transactions. These modules streamline the processes of billing customers and paying vendors, ensuring accuracy and efficiency in financial operations

Accounts Receivable

The Accounts Receivable is crucial for managing the money owed to a business by its customers. It ensures the timely collection of payments, maintains accurate financial records, and supports healthy cash flow management.

Generate and manage invoices for products or services sold to customers.

Record payments received, including cash, card, and voucher.

Tracks overdue accounts and facilitates collection efforts to ensure timely payments.

Provides aging reports and financial summaries to analyze receivables

Accounts Payable

The Accounts Payable is essential for managing a company's obligations to its vendors and suppliers. It ensures timely payments, maintains accurate financial records, and supports effective cash flow management.

Maintains records of suppliers and manages vendor relationships.

Receives, verifies, and records invoices from vendors for goods and services purchased.

Monitors and categorizes expenses to ensure accurate financial reporting and budgeting.

Generates accounts payable aging reports and cash requirement forecasts to support financial planning.

Financial Reporting

Financial reporting is enhanced through the integration of key financial statements, including the Balance Sheet, Profit and loss statement, and Cash Flow Statement. These statements provide a comprehensive view of a company's financial health, facilitating insightful business analysis.

Trial Balance

Go to: Accounts > Financial Statements > Trial Balance.

A Trial Balance is an accounting report that lists account balances for all your Accounts (“Ledger” and “Group”) for any given reporting period. A company prepares a trial balance periodically, usually at the end of every reporting period. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct. The totals of Debit and Credit columns must be the same for any given period, to ensure the entries are correct. In LANAERP, the report shows the following columns:

● Opening (Dr): Opening debit balance as on From Date

● Opening (Cr): Opening credit balance as on From Date

● Debit: Total Debited amount against the account between the selected period

● Credit: Total Credited amount against the account between the selected period

● Closing (Dr): Closing debit balance as of Date

● Closing (Cr): Closing credit balance as of Date

Balance Sheet

The Balance Sheet offers a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity. This statement is fundamental for assessing the company's liquidity and solvency.

Go to: Accounts > Financial Statements > Balance Sheet.

Profit and Loss statement

A Profit and Loss Statement is a financial statement that summarizes all the revenues and expenses in a given period. The report is also known as the P&L Statement.

In LANAERP, you can run the report across multiple years/periods to compare the values. You can also check values for a specific Finance Book, Project, or Cost Center. You can also choose any other currency to display the balances. If you are running the report to see quarterly/monthly balances, you can choose whether you want to show accumulated balances or only for each period.

Go to: Accounts > Financial Statements > Profit and Loss statements.

Cash Flow Statement

A Cash Flow is a financial statement which shows the incoming and outgoing of cash or cash-equivalents for a company. It is used to analyze the liquidity position of the company.

Go to: Accounts > Financial Statements > Cash Flow.

Taxes

Sales and Purchase Register

The Sales and Purchase Register report shows all the Sales and Purchase transactions for a given period with invoiced amount and tax details. In this report, each tax has a separate column, so you can easily get the total taxes collected/paid for a period for each individual tax type, which helps to pay the taxes to the government.

Item-wise Sales and Purchase Register

The Item Wise Sales and Purchase Register report shows all the Sales and Purchase transactions for a given period with item rate, quantity, amount and tax details. In this report, taxes have a separate column, so you can easily get individual taxes for each item. From this report, you can have a look at which items are sold or purchased most.

Other Reports

Party Wise Trial Balance

Usually, you might need to see the trial balance for your customers and suppliers. You can easily get it for all of your customers or suppliers and also for individuals.

Go to: Accounts > Reports > Trial Balance Party.